Chinese cultured and freshwater pearls company Man Sang Holdings, Inc. reported $48.5 million in sales revenue for the 2005/2006 fiscal year, a decrease of 8.2 percent compared to the prior year. The New York City based company said the sales decrease is primarily due to a decline in demand for South Sea pearls from U.S. customers and, to a lesser extent, the strong upward swing of bullion price affecting the sales of its assembled jewelry products.

Gross profit for the year ended March 31 fell 9.7 percent to $13.6 million and gross profit margin was 28 percent, also down slightly from the previous year. Net income for the year was $2.3 million, a $1.2 million drop from the previous year. 

The company said its balance sheet remained within its historical range, with cash and cash equivalents totaling $39.1 million on March 31, compared to $31.2 million on in the previous. The gearing ratio is zero and the current ratio is 12.3.

The company said it has committed to a project investment in China’s Zhuji, Zhejiang, (the “Zhuji Project”). Zhuji Municipal is one of the largest freshwater pearls nurturing and trading centers in the People’s Republic of China supplying a comprehensive range of freshwater pearls and other pearls products to both PRC and many countries in the world. The Zhuji project will involve building a new international marketplace together with related facilities in Zhuji. It said the Zhuji project will enlarge its customer base and business and enhance its competitive advantages, as well as provide it with another source of income in future.

Man Sang Holdings, Inc. is one of the world’s largest purchasers and processors of Chinese cultured and freshwater pearls. The group is principally engaged in the purchasing, processing, assembling, merchandising and wholesale distribution of pearls, pearl jewelry and other jewelry products. In addition, it owns and operates the Man Sang Industrial City, China, a real estate complex, located in Gong Ming Zhen, Shenzhen Special Economic Zone.

JCK